Aug. 2 (Bloomberg) -- Once upon a time, trading in your
reliable foreign car for an entry-level luxury ride was an
obvious process. You drove a Toyota Camry? A Lexus ES was in
your future. Die-hard Honda Civic types stepped up to an Acura.

Yet the entry point to luxury has changed, as many
inexpensive cars now offer scads of gadgets once only found on
pricier vehicles. South Korea’s Hyundai and Kia have muscled
onto the scene, using the same techniques the Japanese once did
-- over-delivering good cars at even better prices.

Which might leave one wondering: What constitutes an entry-level luxury car these days, and where do Lexus and Acura fit
in?

To get a sense of that question, I tested both the latest
Lexus ES and a brand-new Acura model, the ILX.

The all-new, sixth-generation Lexus ES350 starts at
$37,000, and is also available as a hybrid. The Acura ILX,
meanwhile, is $32,000 with an optional technology package. It
too can be had as a hybrid.

The 2013 Lexus ES has traveled a long road since its 1989
inception as a slightly upgraded Toyota Camry. The big luxury
back then was real wood in the interior. The ES would eventually
become Lexus’s best seller in the U.S., a result of reliability,
subdued looks and an undemanding ride.

Japanese Crafting

Values shift. The new ES gets a significant restyling, a
firmer suspension and more engaging drive. Being boring, it
turns out, isn’t so luxurious after all.

My test car, an ES350 prototype with black exterior and
interior, had real wood and leather, and the quality was nice
indeed. The leather that wraps around complex contours is hand-stitched by Japanese craftsmen.

The 300h hybrid model is offered with a synthetic material
Lexus calls “NuLuxe.”

The ES has never been a young person’s car, despite ranking
as one of the entry-level sedans in the Lexus lineup. One is
reminded of this by the slightly uncomfortable pairing of a
round, analog clock hovering under the sharp, eight-inch
navigation screen.

Nonetheless, Lexus is clearly banking on customers finding
luxury in the digital world. Its navigation screen is controlled
by a mouse-like device mounted on the center console, and you
can hook up a smart phone to the system and access applications
like Pandora radio, OpenTable and Yelp.

Camera Feature

Safety options include a system that alerts drivers about
to back out of a parking lot to cars passing behind, as well as
lane departure and dynamic cruise control.

More interesting is the better-tuned suspension. The ES350
is front-wheel drive, so you can forget about it being a hot
sports sedan. Yet the 3.5-liter V-6 is sufficiently sprightly,
with 268 horsepower and 248 pound-feet of torque. Gas mileage is
21 city, 31 highway, while the hybrid (which has a four-cylinder) gets 40 and 39.

Compared to previous generations, the new ES350 is simply
more entertaining to drive. And it even looks pretty good with
the new, rather funky Lexus grill and front end.

While the ES now rides on the slightly larger Toyota Avalon
platform, the brand-new Acura ILX is on the same foundation as
its cousin the Honda Civic.

Defect Recalls

The new generation Civic, which went on sale last year, has
fallen far short of expectations, with a lackluster ride and two
recalls because of defects. The company is rushing out an early
fix with a redesign for 2013.

Here’s a suggestion for Honda: Take some cues from the ILX.
A handsome sedan with a conventionally-raked windshield and a
longer hood, it fixes the snub-nosed oddities of the current
Civic. There’s a nice interplay of creases and folds along the
body and rear.

Though the ILX name is new, there are hints at former Acura
models that I was fond of, like the Integra. The ILX Premium
model I tested, which starts under $30,000, has a 2.4-liter
engine with 201 hp and a sweet six-speed manual. Oddly, you
cannot get an automatic transmission with the 2.4-liter engine.
That will disappoint many a buyer.

The Premium model is a car for people who like to drive.
The engine revs high (over 7,000 rpm), the stick is fun to use
and the car is engagingly responsive.

Slow Horses

Sadly, the standard ILX comes with a 2.0-liter four-cylinder with only 150 hp, and a decidedly less-than-luxurious
five-speed automatic. Even the BMW 5 Series is now offered with
a four-cylinder engine, but the lackluster power on the 2.0-liter ILX is disappointing.

The ILX’s top-of-the-line technology package brings
navigation with traffic, Bluetooth and access to Pandora. It’s
an upmarket car, but not really a premium-level one. Cross-shoppers might take a look at the $28,000-plus Hyundai Sonata
Limited, which has a 274-hp turbo four cylinder and heated front
and rear seats.

As an aside, Hyundai’s $35,000 Genesis sedan is a credible
entry to the luxury field, making a likely competitor to the
Lexus ES. It can be had with either a V-6 or a V-8.

Still, Corolla drivers will appreciate the trade-up to the
ES, while Lexus can credibly hang onto its entry-luxury mantle.
Honda drivers who like to shift using a stick have a nice new
option. Others might want to keep on looking.